Suzlon agrees $485m bonds deal

Indian wind group Suzlon has reached a deal to restructure $485m worth of bonds after 18 months of negotiations.

The company said it has concluded talks with a committee representing its bondholders and an agreement has been reached to issue new five-year bonds.

The new bonds will have a conversion price of 15.46 rupees. Their yield will be about 5%, said a statement from Suzlon.

The arrangement – which is subject to formal approval by bondholders and India’s financial authority – would end a process that began in October 2012, when Suzlon was unable to settle a chunk of foreign currency convertible bonds worth $221m.

The issue has loomed over Suzlon’s finances ever since as the turbine-maker attempted to get back on a sound footing amid a downturn in its Indian domestic market.

The company and the bondholders’ committee reached a “standstill agreement” lasting until 15 August to carry out the restructuring.

Suzlon finance chief Kirti Vagadia said: “The proposed cashless restructuring package for our existing bonds is an optimal solution to our last remaining piece under the comprehensive liability management programme and is value accretive for all our stakeholders.

“The Suzlon Group remains thankful to the secured lenders and bondholders for their patience and constructive approach in arriving at a solution.”

Shares in Suzlon – which also owns German turbine-maker REpower Systems – were trading more than 6% higher in Mumbai this afternoon.

UMaine to test 56-meter blade

02 September 2014 07:42 GMT

Brazil postpones A-5 tender

02 September 2014 01:58 GMT

Brazil approves QGER wind start-up

02 September 2014 05:21 GMT

Warnings on UK funding mechanism

02 September 2014 03:56 GMT

TenneT: Offshore lag continues

02 September 2014 03:16 GMT

Two extra years for Kriegers Flak

02 September 2014 03:07 GMT

Move on Brazilian local content

02 September 2014 10:59 GMT

Heritage fears sink wind project

02 September 2014 12:07 GMT

250MW of Polish wind sold

02 September 2014 11:41 GMT

JDR nets Dudgeon cable deal

02 September 2014 11:16 GMT

INTERVIEW: Hermann Albers, BWE

02 September 2014 09:05 GMT

Atlantic Array data made public

02 September 2014 09:46 GMT

IN DEPTH: Europe's wind capital

02 September 2014 09:15 GMT

Vestas gets 58MW Poland order

01 September 2014 05:44 GMT

IN DEPTH: UK offshore game-changer

02 September 2014 09:12 GMT

Glennmont round raises €500m

01 September 2014 04:34 GMT

Scots grant licence for EOWDC

01 September 2014 03:00 GMT

IN DEPTH: Siemens' bid to stay top

01 September 2014 09:13 GMT

Aikengall extension opposed

01 September 2014 02:31 GMT

Drive to cut UK offshore costs

01 September 2014 01:21 GMT

Become a Recharge subscriber!

Or try our free trial.

Order Subscription

Already a member?

Login


Recharge Monthly Magazine